Games attract billions, reasons for oil to rise and what matters in the market

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Understand what led Microsoft to pay US$ 75 billion for a game producer and how oil prices reached the highest level since 2014 and should not stop there.

What matters most: why managers are moving away from darling tech stocks to focus on other sectors, and the billion-dollar dispute between Tesla shareholders and Elon Musk over a purchase the automaker made in 2016.

Microsoft and the billionaire game

Microsoft closed on Tuesday (18) the biggest acquisition in its history. American big tech bought video game producer Activision Blizzard, from “Call of Duty” and “Candy Crush”, for $75 billion (R$ 414 billion).

This is also the biggest deal in the history of the games industry, and makes Microsoft the third-largest game company in the world, behind China’s Tencent and Japan’s Sony.

Activision Blizzard: the producer has been facing, since last year, a reputational crisis that made its shares plummet more than 30%. The company suffered several complaints of a toxic work environment, with abuse and misogyny.

The news of the purchase of Microsoft made the producer’s shares soar almost 26% this tuesday.

What Microsoft wants: the purchase, in addition to raising it to the elite of game producers, also comes to fill your Game Pass catalog. Xbox’s flagship game subscription service has 25 million of subscribers.

• Microsoft also sets foot in one of the most profitable and fastest-growing sectors of the gaming market: mobile game development.
• But these are not the only reasons. The purchase even involves plans for the metaverse – a trendy topic in the sector – with the game “World of Warcraft”, analyzes João Varella.

Billion Machine: the year started hot in negotiations involving the world of games. Last week, Take-Two, from “GTA” and “Red Dead Redemption”, bought for $12.7 billion (R$72.14 billion) to Zynga, also focused on the mobile world.

Not cinematic, not musical: the world of games is what attracts attention and money in entertainment. It is a market that already adds up $300 billion per year, according to Accenture data to which the Folha had access in July last year, when Magalu bought KaBum!.

No wonder Netflix has plans to offer games on its platform.

Black gold

The price of oil in the international market reached, this Tuesday, the highest value since October 2014. The barrel of Brent, a world reference, rose 1.64% to US$ 87,60 (R$ 482,25).

The rise caused a decline in American stock exchanges, with the market predicting an advance in inflation and, consequently, the possibility of a faster rise in interest rates.

What explains: Geopolitical tensions and a drop in production expectations impact the current rise in prices, but nothing close to the influence that the decisions of OPEC and allies have on the price of the commodity.

• The cartel maintained, at the meeting at the beginning of the month, the current level of increase in production, which is 400 thousand barris per day.
• The decision put pressure on oil prices because the market considers that the omicron variant has had little effect on economic activities, and demand is expected to remain high.

Why it matters: every time the commodity prices rise, the Brazilian scratches his head because he already foresees a rise in fuel prices.

Oil at $100? The projection of Goldman Sachs analysts is that the commodity should surpass this level in 2022, with an upward trend in global demand.

From darlings to rejects

Once considered the darlings of the market, technology stocks are now the most avoided by investors, surveys of major foreign managers show.

• A Bank of America (BofA) survey of investors with $1.2 trillion (R$6.6 trillion) under management showed that they have reduced their overweight positions (with above average performance) to the lowest levels since 2008.
• Another poll by Deutsche Bank found that the vast majority of respondents believe US tech stocks are in bubble territory.

What explains: everyone is apprehensive about the signs of anticipation of interest rate hikes by the Fed, the US central bank. This move scares investors away from riskier assets and particularly penalizes technology companies that need constant credit to grow.

new focus: surveys also point out that managers have shifted their sights to actions in sectors that are not beaten so much by the monetary tightening. Among those cited are securities from banks, commodities and industries.

no one safe: Brazilian techs are no exception and have also been penalized – both on the local stock exchange and abroad.

The biggest example is Nubank, which after its IPO in the US became the most valuable bank in Latin America, but lost its position to Itaú last Friday (14th). This Tuesday, fintech shares fell more 5%.

Shareholders on Musk’s tail

A group of Tesla shareholders asked the US court on Tuesday that Elon Musk return $13 billion (R$ 71.8 billion) to the automaker due to the agreement that involved the purchase of SolarCity in 2016.

Understand: The group of pension funds and asset managers says that Musk, at the time, coerced Tesla’s board to buy SolarCity, whose main shareholder was the billionaire himself.

They even say that the solar panel company was close to insolvency and that it saddled Tesla with its debts. $3 billion (R$ 16.5 billion, at the current price) at the time.

Remember the case: Tesla’s purchase of SolarCity came as the shares of the two companies were on a downward trend. In an attempt to reverse the scenario, Musk made two decisions:

• One was the launch of the Model 3, the automaker’s bet for the popular market.
• Another was the purchase of SolarCity in a plan to create an integrated company that would transform energy generation and consumption.

What Musk says: he claims that SolarCity was nowhere near bankruptcy and that its finances were similar to many high-growth technology companies.

The Tesla founder, who last year sold nearly $14 billion (R$ 79.734 billion) in company shares, said that the value demanded by shareholders is much greater than that of other similar processes.

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